Pensions - Articles - TPR statement on climate risk guide consultation

 Pensions minister Guy Opperman announced the public consultation on new non-statutory guidance for trustees of occupational pensions schemes on the risks and opportunities associated with climate change.

 The draft guide has been drawn up by The Pensions Climate Risk Industry Group (PCRIG) a group set up last summer by the Department of Work and Pensions, TPR and other pension representatives.

 PCRIG intends to ensure its guidance is in line with recommendations from the Taskforce on Climate-related Financial Disclosures.

 The guide is designed to help trustees meet their existing legal obligations to consider financially material factors in investment decision-making and help them embed climate-risk considerations into their trustee governance and risk management process.

 David Fairs, executive director of regulatory policy, analysis and advice at TPR, said: “Climate change is a core financial risk which pensions trustees must consider when setting out their investment strategy.

 “That’s why PCRIG’s guide is so important as it will help trustees demonstrate how they are taking this and other financially material considerations into account over the lifespan of their investments.

 “I urge the industry to take part in this consultation and help shape guidance which will ultimately mean savers are best protected from the far-reaching financial risks that could arise from climate change and a transition to a carbon-neutral economy.”

 The consultation, which opened today, closes at 11.45pm on 7 May 2020. PCRIG intends to publish the final guidance in the autumn.
 To take part in the consultation go to https://getinvolved.dwp.gov.uk/05-policy-group/aligning-your-pension-scheme-with-the-tcfd-rec/